Trade current vehicle for a lower monthly payment lease?

Ask the Hackrs
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21

Not in all regions.

22

That’s a very low interest rate. Just tackle the negative equity…don’t make it complicated with rolling it in with a lease.

1 Like
23

No issues with vehicle. Just trying to lower all my monthly expenses.
I do have enough to put as a down payment to offset the negative equity. I was just trying to figure out if there way to lease a vehicle without having to put a down payment and get a lower monthly payment.

24

Thank you!

25

Like said above, not in all markets. But in my area I can do that deal.

26

For example, current MF of 0.00147 for the Hyundai Ioniq Plug in turns out to be an APR of 3.53%.

So if you rolled in your negative equity for a lower payment you’re essentially paying higher interest.

So a sound financial move would be to payoff the negative equity and get a cheap lease.

Not rolling in the negative equity.

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27

If you do 36/10 and able to get $500 bonus drove - yes.

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28

This is what I see right now including all tax and fees.

image
image1125×804 231 KB

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29

Just to add if you pay the $3,900 of negative equity out of pocket and let’s say go with $200/month all in lease. It will take you ($529-$200 = $329) about 11 months to replenish your cash Instead of the 36 month lease to pay it off.

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30

Agreed… at least wait until you are at a break even point with the current car which should happen in 8-9 months and then move on. The depreciation curve is pretty slow at this point so the negative equity will burn off pretty quickly. Pay more than the monthly if you want to get out sooner.

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31

If you have the cash, then pay it off directly to your current lender.

Rolling in neg and applying a down payment to offset it is very tax- and interest-inefficient.

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32

If he got the tax credit for the trade in, it would help bring the negative down. He would still be rolling it in, and I would never recommend doing that.

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33

:snowflake::snowman_with_snow::snowflake::snowman_with_snow: off ramp

34

Have you tried selling your car to private buyer? If Carmax is giving 9100 your car must be worth 11-12k. You won’t need to roll that much negative equity. Also remember after completing your current car payments, your car’s value won’t be $0. You can keep driving and sell it around 7-8k at the end probably.

1 Like